China Bio-Med Regeneration Technology Limited provided earnings guidance for the year ended April 30, 2014. For the year, the company expected to record a significant loss as compared to that for the financial year ended on April 30, 2013. The deterioration of the group's final results is mainly attributable to: the recognition of an impairment loss in the amount of approximately HKD 142 million in respect of the fair value of the goodwill arising from the acquisition of Maylion Management Limited and its subsidiary in December 2013 (the Acquisition).

The recognition of such impairment loss represents mainly an elimination of the difference recorded for share-based transaction between the fair values of the shares of the company on the completion date of the acquisition in December 2013 and the date of signing of the sales and purchase agreement in respect of the acquisition in July 2013; the recognition of provision for debt element of convertible bond of approximately HKD 4.5 million; and the increase in the group's research and development cost, employee benefit expenses and office rental and building management fee as consistently reported and disclosed in the company's past quarterly and interim reports.